Land-based casino operator Boyd Gaming has completed its acquisition of Pala Interactive, the North America-facing igaming software and services supplier that is majority owned by the Pala Band of Mission Indians.
Boyd took ownership of Pala Interactive and its subsidiaries for total net cash consideration of $170.0m, as per the terms of an agreement reached in March this year.
Founded in 2013, Pala Interactive provides real-money and social gaming solutions on a B2B and B2C basis in regulated markets across the US and Canada. Its B2B services are active in eight US states and in Canada, with B2C offered in New Jersey and Canada.
Pala Interactive’s range of technology includes a player management system, as well as casino, poker, integrated sports, social casino and poker platforms, and managed services.
“Online casino gaming is an attractive growth opportunity for our company, and the acquisition of Pala Interactive provides us with the technology, products and expertise to create a profitable regional online casino business,” Boyd’s president and chief executive Keith Smith said.
“We look forward to working with the Pala Interactive team in executing our online casino gaming strategy, which will complement our existing land-based operations and further expand our nationwide customer base.”
The deal closed earlier than Boyd initially anticipated, with the operators having originally said it expected to complete the acquisition in the first quarter of 2023.
Last week, Boyd announced that the deal was close, upon also posting its results for the third quarter of 2022.
Revenue in Q3 was up 4.1% year-on-year to $877.3m. Of this total, $668. was attributed to gaming operations, with $67.8m generated by food and beverage, and $46.7m hotel, while the remaining $94.8m came from other activities.
Operating costs and expenses were 3.2% higher year-on-year at $639.8m, while after also including $34.1m in financial costs, down 24.1% on last year, pre-tax profit was $203.4m, up 14.1% on Q3 of 2021.
Boyd paid $46.4m in taxes during the quarter, which left it with a net profit of $157.0m, a rise of 13.6% on last year.
Adjusted earnings before interest, tax, deprecation, amortisation and rent costs (EBITDAR) was 0.9% lower year-on-year at $337.7m but was still the second highest total in Boyd’s history, second only to the record figure posted in Q3 last year.